Keep Your Memory Alive Through Planned Giving

Planned Giving

Consider Keeping Your Memory Alive Through Giving: Everyone has an estate and should have a plan for its ultimate use. The estate planned by a will or other instruments ensures that all property and funds will be distributed in accordance with the wishes of the individual; that the administration of the estate will be undertaken by those who have that person’s confidence; and that tax and other benefits provided by law will be fully realized.

Careful planning under tax laws designed to encourage philanthropy makes possible a significant contribution in the future of the Ivy Foundation of Montgomery, Inc. and a perpetual recognition of a donor’s support of its goals in the interest of sisterhood, scholarship and social equity. We address here the ways in which gifts can be made by will to benefit the Initiatives of interest to the decedent.

The suggestions, however, are not all inclusive. Where tax benefits are mentioned, these relate only to Federal tax laws, but the laws of the state may also make possible additional savings. Since individual circumstances control the most advantageous arrangement for each person, planning must be done in consultation with legal and other advisors.

Gifts by Will or Trust

A bequest, or gift by Will, is the method most frequently used to make a future gift to a Foundation. Some stakeholders and friends have inquired of the Ivy Foundation of Montgomery, Inc. about how to make plans for gifts of this kind.

Undoubtedly, others desire to make provisions for their Memorial Contributions through a thoughtfully drawn Will. There is growing realization among donors throughout the philanthropic realm that small as well as large bequests can make it possible for Foundations to meet increasing opportunities to make an impact with individuals, families and communities in the interest of their own personal legacy.

Whatever the size, each bequest is valued as a commitment to the future of the Ivy Foundation of Montgomery and the potential success of meeting its goals and objectives while keeping alive the memory of our donor’s generosity.

Gift Options

Within the framework of a will there are several possibilities for making gifts:

The simplest of these is the outright gift of specified funds or property. When an estate seems likely to exceed the requirements needed for family security, and the donor has a definite idea of the provision to be made for the Ivy Foundation of Montgomery, Inc., a specific bequest may be well advised.
A bequest to the Ivy Foundation of Montgomery, Inc. of property not readily saleable usually results in a reduction of the taxable portion of an estate. Real estate, royalties from patents and copyrights, art objects, rare books, and securities all lend themselves to gifts by bequest if the donor so desires.

The ultimate determination of whether to retain or sell property bequeathed to the Ivy Foundation of Montgomery, Inc. should be left to the Foundation’s discretion to assure long-range usefulness to meet the needs of that may arise.
Some donors prefer to provide for a charitable bequest on a residual basis, after specifying direct bequests which do not exhaust the full estate. In such a case, the Ivy Foundation of Montgomery, Inc. can be named as a residual beneficiary to receive whatever is left over, or some fractional amount of the remainder. A bequest of this type adjusts itself automatically to the size of the estate.

Various combinations of provisions like those described in this Planned Giving section may apply to a donor's circumstances. A trust counselor or other financial advisor can help in estate planning, but wills should be drawn or modified only by an attorney. The Ivy Foundation of Montgomery, Inc. does not render financial or legal advice, but Executive Officers are available to consult with a donor and their advisors to assure that a gift will provide the greatest possible satisfaction and do what the donor desires to do in the best interest of the Ivy Foundation of Montgomery, Inc. and its mission.

General Information

The following is basic information about making a bequest or gift by will to the Ivy Foundation of Montgomery, Inc. Careful planning under tax laws designed to encourage philanthropy makes possible a significant contribution to the future of the Ivy Foundation of Montgomery, Inc. and a perpetual recognition of a donor’s support.

We address here the ways in which gifts can be made by will to benefit the Ivy Foundation of Montgomery, Inc. The suggestions, however, are not all inclusive. Where tax benefits are mentioned, these relate only to Federal tax laws, but the laws of the state often make possible additional savings.

Since individual circumstances control the most advantageous arrangement for each person, planning must be done in consultation with legal and other advisors.

Saving Clause

A saving clause should be incorporated into any bequest to the Ivy Foundation of Montgomery, Inc., which is designated or restricted as to use. No one can anticipate, beyond a certain number of years, developments and opportunities that may occur and the associated adjustments which would be needed. The flexibility provided by a saving clause is especially desirable. Such a clause might read as follows:

"In the event it is found by the Ivy Foundation of Montgomery, Inc. Board of Directors that all or part of the income (all or part of this gift) cannot be used to the best advantage for the above purpose, then all or any part of the income (all or any part of this gift) not so expended may be used for any purpose approved by said Board of Directors, which is within the charitable corporate purposes of the Ivy Foundation of Montgomery, Inc."

Real Estate

Real estate may be left to the Ivy Foundation of Montgomery, Inc., but it is important that the applicable state laws be considered by an attorney.

Investment of Funds

The Ivy Foundation of Montgomery, Inc., in accord with sound investment practices, may commingle its investments, allocating to individual funds a proper, fractional interest in the returns of the combined portfolio. Though not essential, it is highly desirable from Ivy Foundation of Montgomery, Inc. standpoint to include a sentence in gift statements which might read as follows:

“The principal of this gift may be commingled with other funds of the Ivy Foundation of Montgomery, Inc. for investment.”

Gift of Securities

In making gifts of securities by Will, special care should be taken to account for possible stock splits, changes in corporate name, mergers, or even a sale by the donor of specified securities. By careful wording, the donor and his legal advisor can avoid the failure of a gift through operation of such contingencies.

Codicil

Changes in an existing Will can be easily accomplished by an additional sentence or paragraph in an amendment known as a Codicil. Such changes must, however, be completed with the same formality as the Will itself. The forms suggested above may be used in either a Will or a Codicil.

Will Review and Revisions

As family, residence, or other circumstances change, it is always advisable to review and revise a Will to reflect new situations. Many people undertake such a review on an annual basis. Review and revisions ensure that estate plans will be properly carried out.

Life Income Funds (Charitable Remainder Trusts)

A will is basic to any well-planned estate. There are, however, other ways in which a donor may make what amounts to a bequest, through a gift during a lifetime. A carefully planned program of giving involving a combination of current gifts, gifts to Life Income Funds, and gifts by Will can result in a more rewarding and substantial contribution than might otherwise be possible.

A Life Income Fund is an arrangement whereby a gift is made to the Ivy Foundation of Montgomery, Inc. in Trust, either by Will or during one’s lifetime, with the provision that income is to be paid to the donor or other persons for life. A variety of arrangements are possible, and plans can be made to suit individual situations. A Life Income Fund can be established through a single gift or entirely by Will; additions to an existing Fund (other than an Annuity Trust) may be made during lifetime or by Will.

Legal Advice

A will should always be drawn by, or with the advice of, a lawyer. Suggestions in this piece do not diminish the need for legal counsel. The Ivy Foundation of Montgomery, Inc. is indebted to, and dependent upon, the generosity of members and friends who have aided in building its private resources. Each gift, which augments permanent resources, becomes a perpetual tribute to its giver and provides a means of sharing in lasting achievements.

A gift to the Ivy Foundation of Montgomery, Inc. will advance a noble expression of devotion to the enduring public good of our community.